A business law blog published by the business lawyers at AttorneyBritt - Gary L. Britt, CPA, J.D. Commentary and information regarding the laws and regulations applicable to individuals, corporations, partnerships, and limited liability companies (LLCs); as they relate to the myriad of business transactions, contracts, and agreements every business owner, shareholder, member, physician, and/or health care provider must consider.

Friday, August 14, 2015

FTC Offers First Ever Guidelines On Unfair Competition Enforcement

The Federal Trade Commission has issued a Statement of Enforcement Principles
that describes the underlying antitrust principles that guide the
Commission’s application of its statutory authority to take action
against “unfair methods of competition” prohibited by Section 5 of the
FTC Act but not necessarily by the Sherman or Clayton Act.

“The
promotion of consumer welfare is a cornerstone of the FTC’s antitrust
enforcement, and these principles reaffirm the agency’s legal framework
in carrying out that important mission,” said FTC Chairwoman Edith
Ramirez. “The statement formally aligns Section 5 with the Sherman and
Clayton Acts.”

The statement announced today explains
that, consistent with FTC precedent, the Commission will adhere to the
following principles when deciding whether to use its standalone
authority under Section 5 of the FTC Act to challenge unfair methods of
competition:

the Commission will be guided by the public policy underlying the antitrust laws, namely, the promotion of consumer welfare;

the
act or practice will be evaluated under a framework similar to the rule
of reason, that is, an act or practice challenged by the Commission
must cause, or be likely to cause, harm to competition or the
competitive process, taking into account any associated cognizable
efficiencies and business justifications; and

the
Commission is less likely to challenge an act or practice as an unfair
method of competition on a standalone basis if enforcement of the
Sherman or Clayton Act is sufficient to address the competitive harm
arising from the act or practice.